Spotlight

Indian equity markets are likely to open on a cautious note and remain under pressure, tracking the sharp overnight sell-off on Wall Street and weak Asian market cues. Sentiment has deteriorated following hotter-than-expected U.S. inflation data, with consumer prices rising 3.7% year-on-year in September compared with 3.4% in August and market expectations of 3.6%. The stronger inflation reading has reinforced concerns that U.S. interest rates could remain elevated for longer, putting pressure on richly valued growth and technology stocks.  

The global sell-off has extended into Asian markets, with the Nikkei 225 declining over 3% and the KOSPI falling more than 6% in early trade, reflecting continued weakness in semiconductor stocks. Meanwhile, WTI crude remains elevated around the $94–95 per barrel range, while persistent FII selling adds to the domestic market headwinds. Rising US Treasury yields and a stronger dollar could further weigh on emerging-market flows and investor sentiment.  

Renewed Houthi attacks on Saudi Arabia have heightened fears of a further escalation in the Middle East, while reports of cargo ships sinking near the Strait of Hormuz have intensified concerns over maritime security. With the crisis already disrupting oil flows, the risk of prolonged supply constraints continues to keep crude prices elevated and inflationary pressures in focus.

Technical View

Nifty 50

Nifty 50 index continues to trade below its key moving averages, keeping the broader technical structure weak despite signs of easing bearish momentum. On the upside, 22,800 is the  immediate key resistance zone, followed by 23,000. A sustained breakout above 22,800 could extend the recovery, while a decisive move above 23,000 would provide stronger confirmation of improving momentum.
 
On the downside, 22,500 is the immediate support level, followed by the crucial 22,300  zone. A decisive break below 22,200 could revive selling pressure and expose the index to further downside. Overall, the outlook remains cautious, with the index needing to sustain above 22,800 to strengthen the recovery.

Bank Nifty

Bank Nifty continues to trade below its 20-, 50-, 100- and 200-day EMAs, indicating that the broader technical structure remains weak despite some improvement in near-term momentum. On the upside, 55,500–55,600 represents the immediate resistance zone. A sustained move above 55,600 could pave the way for a recovery towards 56,000, while a decisive breakout beyond this level would be necessary to strengthen the overall technical setup.  
 
On the downside, 55,000 remains the immediate support level, followed by the 54,600–54,400 zone. A decisive break below these support levels could intensify selling pressure and expose the index to further downside. Overall, the near-term outlook remains cautious, with sustained buying above 55,600 required to strengthen recovery momentum and signal a meaningful improvement in the broader technical structure.